Shares of Ford Motor Co. (NYSE: F) were on an upswing in pre-market trading on Thursday even as the automobile major’s EV business incurred an operating loss of $2.1 billion in 2022 and the company announced some key changes to its financial reporting.
The company stated that instead of reporting its results geographically, it will now report its business segments as they focus on different automotive customers. As a result, it will report its results by Ford Blue (iconic gas, hybrid vehicles), Ford Model e (breakthrough EVs), and Ford Pro (commercial products, services).
Ford’s operating losses in the EV business were offset by a $10 billion operating profit when it comes to its internal combustion and fleet businesses. The company reiterated its outlook for FY23 and expects adjusted EBIT to be between $9 billion and $11 billion with adjusted free cash flow anticipated to be about $6 billion.
Ford has projected segment-wise EBIT in FY23 to be around $7 billion for Ford Blue, a “modest improvement from last year; a full-year loss of about $3 billion for Ford Model e; and EBIT approaching $6 billion for Ford Pro, nearly twice its 2022 earnings.”
The company also reaffirmed its margin targets of 10% for adjusted EBIT and 8% for Ford Model e in late 2026.
Analysts remain sidelined about F stock with a Hold consensus rating based on four Buys, seven Holds and three Sells.
